PRONICO Risk Report

⚖️ Legal & Regulatory

Pronico, operating within the mining industry in Guatemala, has faced significant legal and regulatory challenges. Notably, the company has encountered sanctions related to mining activities, reflecting ongoing scrutiny and the need for compliance with international and local laws. These legal hurdles could potentially impact their operational capabilities and financial performance.

• Solway Group received the green light to reactivate a nickel mine in Guatemala 🗓 September 3, 2024.
• The US government sanctioned Solway Group for mining-related corruption in Guatemala 🗓 January 1, 2024.
• An ex-FBI leader began advising the Fenix Mine in Guatemala following the lifting of US sanctions 🗓 December 4, 2023.
• US sanctions targeted Russian involvement in Guatemala’s mining sector 🗓 November 18, 2022.
• A probe accused a Swiss mining firm of hiding pollution in Guatemala 🗓 March 7, 2022.

🏗️ Operational & Business Continuity

Operational challenges have been evident for Pronico, particularly in regard to regulatory controls on mining licenses which could disrupt business operations. Ensuring the continuity of operations while adhering to regulatory requirements will be key for maintaining productivity and business growth.

• The Guatemalan Ministry of Mines announced a review of all mining licenses, highlighting increased regulatory oversight 🗓 January 27, 2024.